Depends on what you're applying for, as far as I know. I think people generally get masters first in many fields (the third years will probably have a better answer)...but it isn't undheard of to go from undergrad -> PhD (I can find a number of examples just by googling famous scientists, for example.) If you look on say, departments at UofT's websites (I did this once so I recall this) they tend to say that they solicit applications from well-qualified undergrads. I don't know whether this applies to Canada, but I also know that in the states people can be accepted to masters and then sort of shift to PhD if they do well on qualifying exams or whatever...I don't know that much. Yeah, hopefully a third year will respond.